LX3 for teenager use

I am looking for a highly capable P&S for my teenagers - one is very much into the arts (painting, drawing, and computer graphics) and the other for around the school newspaper/yearbook type work. Both kids are very tech-savvy.

I'd like something that does deliver good pics out of the box, is portable, has decent video, and can help teach them more advanced photography down the road (i.e. manual controls). Size, sturdiness and low-key looks are also important.

My two candidates would be the Canon G11 and the LX3 - the G11 has easier to use manual controls, sturdy build, and longer lens, but has abysmal video, and size is an issue. The LX3 has the right size, ease of use, and good video. My main concerns for the LX3 are the 'short' (but nice and bright) lens and how easy it would be to adjust manual settings to explore what the camera can do versus just P&S.

As an add-on duty, the winner gets to be used in vacations in 'not-so-choice-spots' around the globe where my D90+70-300VR may not be such a, ehem, good idea...